WATER watchdogs today called on United Utilities to hand out customer rebates automatically when profits and dividends hit a certain level.

United Utilities, parent company of North West Water this week reported increased profits of £444 million in its first full year of trading since the merger with Norweb.

Maurice Terry, chairman of industry regulator OFWAT's Customer Service Committee, said: "Shareholders and customers ought to be treated equitably and today's results show that the company could be far more generous.

"Customers have received rebates in the last two years - and this announcement gives good ground for expecting that to continue.

"Can United Utilities design a system to ensure that rebates to customers are triggered automatically if profits and dividends rise above a certain level? That would at least show the company was intending to share the benefits between shareholders and customers."

According to customer campaign group Waterwatch, half of the bills paid by North West Water Services customers end up as profits.

And they claim that of those profits, £37.29 goes to shareholder dividends leaving only £55.58 to be re-invested in water business.

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